1. The term cost must be qualified according to its context. Discuss this statement referring to important concepts of cost.

2. Explain the following with examples:

• Code of Accounts,

• Activity-Based Costing (ABC), and

• Work Breakdown Structure (WBS)

• job responsibilities of a cost engineer

3. What are the four common methods for providing cost information as they apply to cost management?

4. Explain life-cycle costing. How is the life-cycle costing different from conventional costing? Where is this costing method used extensively?

5. What is meant by elements of cost? Discuss the various elements of cost.

6. Define costing and discuss the objectives of cost accounting. What are the methods of costing that are used in cost accounting?

7. Miriam is interested in estimating the annual labor and material costs for a new production facility. She was able to obtain the following cost data:

Labor Costs:

• Labor cost index value was at 124 ten years ago and is 188 today.

• Annual labor costs for a similar facility were $575,500 ten years ago.

Material Costs:

• Material cost index value was at 544 three years ago and is 715 today.

• Annual material costs for a similar facility were $2,455,000 three years ago.

8. In your own words, develop a statement of what the authors mean by life-cycle costs. It is important for a firm to be aware of life-cycle costs. Can you explain why?

9. Calculate the time required to produce the hundredth unit of a production run if the first unit took 32.0 minutes to produce and the learning-curve rate for production is 80%.

1. Estimate the overall labor cost portion due to a task that has a learning-curve rate of 85% and reaches a steady-state value after 16 units of 5.0 minutes per unit. Labor and benefits are $22 per hour, and the task requires two skilled workers. The overall production run is 20 units.